The Lib Dems backed an amended Labour proposal for an increase of 2.98 per cent - rising to five per cent with additional funding for fire, police and other services.

The average rise in England is six per cent.

Sefton's budget means a Band D tax bill will go up by £56.79 a year.

Conservative leader, Cllr Les Byrom, criticised the deal as "the most formal admission of a pact between Labour and the Liberal Democrats".

His party had argued for no increase claiming £4.5 million could be saved from staffing cuts and changes within social services, education, leisure and technical services.

Lib Dem leader Cllr Tony Robertson said: "I wrote to all three opposition leaders setting out my thinking as we embarked on the budget process.

"Only the Labour group came back to me to discuss their emerging thinking. The Conservatives responded 20 minutes before the start of the budget cabinet meeting and I had no response whatsoever from the Southport Party."

The budget includes cash for CCTV projects, tackling anti-social behaviour and skateboarding provision for youngsters.

* The political make-up on Sefton Council is Labour (22), Lib Dem (21), Conservatives (18), Southport Party (three) and two seats are vacant.